Goldman Sachs is making Bitcoin funds available to wealthy clients, joining its rival Morgan Stanley. The move could speed institutional adoption and support prices of the largest cryptocurrency.
“The investment bank soon will help wealthy clients invest in digital assets, creating a new Digital Assets Group within its private wealth management division. Mary Rich was named as global head of the new unit, according to a memo to employees released Wednesday and reviewed by Barron’s,” reports Liz Moyer for the magazine.
Institutions are slowly warming to Bitcoin, which many market observers believe will lead to substantial long-term price appreciation.
Institutional investors are playing an increasingly prominent role in the Bitcoin market, and that role is likely to continue growing. For smaller investors, there are tangible benefits to this scenario.
“Not long ago, Goldman decided to broaden the scope of its business and its client base, boosting the profile of its consumer banking operation, and its services for wealthy investors,” adds Barron’s.
Big Banks Are Backing Bitcoin
Supply of Bitcoin is dwindling because institutional investors are piling into the market, and many retail investors are holding onto the cryptocurrency for longer periods of time. Asia is seeing particular interest in rising institutional investment. China is working on a state-backed cryptocurrency offering with the help of major private industry players.
“Bitcoin has gained acceptance in mainstream circles after a meteoric increase in value over the last year. With more people clamoring to own it—along with associated funds or other crypto assets—financial firms are scrambling to meet demand,” reports Barron’s.
Amid low global interest rates and central bank debasement of fiat currencies, Bitcoin is becoming a go-to asset for some high-level investors and companies.
Goldman’s push into crypto isn’t surprising as the investment bank spoke bullishly about Bitcoin earlier this month and recently revealed plans for a new crypto trading desk.
Goldman Sachs is “restarting a trading desk for cryptocurrencies, a person familiar with the effort said. The Wall Street bank will begin offering Bitcoin futures among other products by mid-March after halting a similar effort started in 2018, according to the person, who asked to to be named because the plans haven’t been announced,” concludes Bloomberg.
For more news, information, and strategy, visit the Crypto Channel.
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